What do I do with leftover money

chelseablue

jimjames wrote: »

We did building work and put £15k on 0% cards. I could have paid it from savings but why spend money you are getting 5% interest on when you can borrow 2 years at 0%. I do also have a lot of other cards and that didn't affect applications but everyone is different so that may not be the case for you.

If you don't have any emergency fund then that's worth building up too so if your boiler or car breaks you have the money to sort it. How much have you already saved with this £1200 per month you have available?

I currently have just over £11,000 in savings. This is in case one of us looses are jobs so would like to keep this

chelseablue

edwink wrote: »

A lot of homebuyers are never quite sure of what amount of money they will be left with at the end of the month after paying their mortgage, bills and anything else. So getting a 25 year mortgage for example makes the payments more manageable than say a 15 year mortgage. Then you can over pay any amount you have left over every month if you want to. Also you can have over payment breaks if anything unexpected arises as you have not committed to paying the extra money by having a mortgage with a shorter lifespan.

The thing with doing the house up first is that you can only do so much at any one time. So some of your left over money at the end of the month might as well go towards the mortgage if there is any leftover as long as you have a little savings pot stashed away for a rainy day.

We moved in to our house 7 years ago and had to do every room. We sorted the house as and when we could and overpaid anything we had left over at the end of the month. We now have a lovely home and are delighted to be mortgage free. Freedom from your mortgage is the best feeling ever.

So I would do your house up slowly, left over money pay towards a savings pot like maybe £100 a month and the rest of the excess money pay towards your mortgage. This is just my opinion because it worked for us and we are so pleased we did things the way we did. Remember that some lenders only allow you to repay £500 a month though or a certain percentage of your mortgage.

Hope that is some help to you

Edwink

Must be lovely to be mortgage free